Wendy's, struggling with beef prices and growing competition, gets a
buyout offer
[October 29, 2026] By
DEE-ANN DURBIN
Wendy’s shares jumped more than 14% Wednesday after noted investor
Nelson Peltz made an offer to buy the chain, which has been struggling
with high beef prices and aging stores.
Peltz’s Trian Fund Management and several partners are offering Wendy’s
$7.35 per share in cash, or a premium of nearly 19% over the stock’s
closing price on Tuesday, in a deal that would take the company private.
The offer values Wendy's at $1.4 billion.
Wendy's, which is based in Dublin, Ohio, confirmed receipt of the
unsolicited proposal in a statement Wednesday and said its board has
formed an independent committee to evaluate it. At the end of last year,
Wendy's had 5,969 restaurants in the U.S. and 1,428 outlets in 38
countries.
Wendy's, founded in 1969 by Dave Thomas and named after his daughter, is
known for its square burgers and Frosty desserts. The fast-growing chain
introduced the drive-thru window in 1970 and went public in 1976. In the
1980s, as it jockeyed for sales with McDonald's and Burger King, Wendy's
launched salad bars and ran its iconic “Where's the beef?” ad campaign.
But as the fast-food market grew even more competitive and rival
burger-focused chains like In-N-Out and Five Guys expanded, Wendy's fell
behind. Wendy's share of U.S. burger chain sales fell from 11.5% in 2019
to 10.4% last year, according to Technomic, a market research company.
In recent years, inflation has also hurt Wendy's and other U.S.
fast-food chains, who have seen traffic from lower-income consumers fall
as they raised prices to combat rising labor, food and packaging costs.
Wendy’s said Wednesday it is moving “with urgency” to rebuild its menu
with a focus on quality and improve marketing and store operations.
Wendy’s hired Bob Wright, who formerly led Potbelly, as its president
and CEO in May. He’s the fourth CEO to lead the company since 2024.
Wendy's has been closing outdated U.S. restaurants so it can focus on
its more profitable locations. The company closed 240 restaurants in
2024 and said earlier this year that it planned to shutter up to 358
locations in 2026.
Then, last month, one of the largest U.S. franchisees for Wendy’s filed
for bankruptcy protection after the chain tried to terminate its
franchise agreement. Michigan-based Meritage Hospitality Group operates
314 Wendy’s restaurants in 15 states.
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A sign stands over a Wendy's restaurant, Feb. 25, 2021, in Des
Moines, Iowa. (AP Photo/Charlie Neibergall, File)
 In a letter to the company’s board
of directors, Peltz said going private “will deliver the best
outcome for the broader stakeholder base.”
“Wendy’s sits at a critical juncture," Peltz wrote. "The external
environment has become increasingly challenging given the
significant pressures on the U.S. consumer, economic uncertainty,
persistent commodity inflation and intensifying competition,
particularly within the QSR (quick service restaurant) burger
category."
Peltz has invested in companies from Procter & Gamble and Disney to
DuPont. According to a regulatory document filed Wednesday, Trian’s
stake in Wendy’s totals 16.3%.
Peltz considered a take-private bid for Wendy's in 2022 but told the
company in January 2023 that he had decided against it, citing its
improved business momentum, according to TD Cowen analyst Andrew
Charles.
Charles said an independent special committee is expected to
evaluate the proposal and both parties have entered into a
confidentiality arrangement.
“In our view, a take-private makes sense as Wendy’s turnaround is
likely to be prolonged given the challenged state of the
lower-income consumer and soft state of the quick service burger
category,” Charles wrote Wednesday in a note to investors.
Wendy's is scheduled to report its quarterly financial results next
week. Analysts expect the company to post earnings of 9 cents per
share on sales of $531 million, according to FactSet.
Shares rose 93 cents to $7.07 Wednesday. They have fallen 26% since
the start of this year.
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